Both real estate and gold have a strong sentimental value for Indian investors, so how do you choose where to invest your money?
Gold has always been a favourite investment for Indian households due to its importance in religious ceremonies in India. Real estate also scores high as an investment option as it brings financial security and higher returns apart from providing you with a solid roof over your head for generations to come.
With real estate investment, whether residential or commercial, one also enjoys price appreciation, especially when the property is of a reputed builder like Ashwin Sheth Group.
Real estate vs. gold, if you are still thinking about which is a profitable investment option for you, here are some differences that will help you make an informed decision.
Size of Investment
Land is a limited resource and has a growing demand with exponential prices. That is the reason investing in real estate requires a huge investment.
In the case of gold, the size of the investment entirely depends on your investment appetite. Depending on your investment capacity, you can start buying as low as 1 gram, 5 grams, 10 grams, or any amount of gold.
Tenure
Real estate investment is best for a long-term investment where the property’s value increases over time, giving you a higher ROI in the future. You can hold gold for short as well as long-term, but it offers nominal returns.
Earning Potential
Real estate investment is one of the best ways to generate a regular monthly income, which gold investments cannot do. When you give your property on rent, it offers you monthly rentals, the part of which can be used to pay the mortgage.
The gold returns fluctuate with the market conditions, which means when the price of gold drops, the investment value also goes down.
Return Rates
The value of a property increases with the market and economy. The real estate sector can yield up to 15% yearly returns because of rising rentals. The returns from the gold are nominal.
Liquidity
Real estate offers less liquidity in comparison to gold. Selling off your property can take a number of days or even months due to the paperwork and other legal formalities, which make the process lengthy and complex.
On the other hand, buying and selling gold is a simple process, making it a highly liquid asset that can be encashed at any point in time without any formalities.
Market Volatility and Risk
Real estate is a highly stable investment option subject to low volatility compared to gold and other investment options. Property brings financial security for your future.
Gold is more volatile than real estate, and its price changes almost every day. Moreover, it always has the risk of being stolen.
Why is Real Estate a Profitable Investment Option for You?
Compared to gold, real estate can be a safer and more profitable investment. Investing in real estate means owning a property that not only offers you a safe abode but also gives you financial security.
According to billionaire Andrew Carnegie, 90% of millionaires created their wealth by investing in real estate. Real estate consistently increases in value over time which will help you fetch excellent returns on the money you have invested in the property. Moreover, it is less susceptible to frequent fluctuations.
History suggests that real estate has given an average of 8% returns and can go up to 15% or more because of rising rentals. Therefore, it is wise to invest in real estate by choosing the right property that can give you maximum returns.
Ashwin Sheth Group is constructing some of the finest residential properties in Mumbai that offer beautifully designed, well-ventilated apartments with a wide range of modern amenities. So, check out our new projects, such as 72 West in Andheri, Sheth Avante in Kanjurmarg, Sheth Montana in Mulund, Sheth Zuri, Sheth Avalon and Vasant Lawns in Thane.
These residential properties are located in close proximity to hospitals, schools, banks, shopping malls, and restaurants, making it easier for you to reach places of importance in a short duration. Moreover, it can deliver massive returns on your investment over a period of time.
